as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; changing the sales price of 1.3 cigarettes and tobacco products for purposes of the 1.4 sales tax; eliminating certain discounts relating to 1.5 cigarettes and tobacco products taxes; providing for 1.6 use of the proceeds to fund youth tobacco use 1.7 prevention programs; appropriating money; amending 1.8 Minnesota Statutes 2002, sections 297A.62, by adding a 1.9 subdivision; 297A.94; 297F.05, subdivision 1; 297F.08, 1.10 subdivision 7; 297F.09, subdivision 2; 297F.10; 1.11 proposing coding for new law in Minnesota Statutes, 1.12 chapter 144. 1.13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.14 Section 1. [144.397] [YOUTH TOBACCO USE PREVENTION 1.15 ACCOUNT; APPROPRIATION.] 1.16 The youth tobacco use prevention account in the general 1.17 fund consists of revenues credited to it under sections 297A.94 1.18 and 297F.10. All earnings of the account must be credited to 1.19 the account. Money in the account is annually appropriated to 1.20 the commissioner of health to fund local and statewide 1.21 initiatives to reduce the prevalence of tobacco use among 1.22 youth. The commissioner may award grants to public, private, or 1.23 nonprofit organizations to provide statewide or local youth 1.24 tobacco use prevention programs, including education, public 1.25 awareness, and training and technical assistance. 1.26 Sec. 2. Minnesota Statutes 2002, section 297A.62, is 1.27 amended by adding a subdivision to read: 1.28 Subd. 4. [CIGARETTE AND TOBACCO PRODUCTS SALES.] The sales 1.29 tax under subdivision 1 on retail sales of cigarettes and 2.1 tobacco products subject to the tax under chapter 297F is 2.2 imposed on the sales price plus the amount or value of any 2.3 rebate, discount, coupon, sticker, allowance, or other payment 2.4 from a manufacturer or distributor to the retailer. 2.5 [EFFECTIVE DATE.] This section is effective for sales made 2.6 after June 30, 2003. 2.7 Sec. 3. Minnesota Statutes 2002, section 297A.94, is 2.8 amended to read: 2.9 297A.94 [DEPOSIT OF REVENUES.] 2.10 (a) Except as provided in this section, the commissioner 2.11 shall deposit the revenues, including interest and penalties, 2.12 derived from the taxes imposed by this chapter in the state 2.13 treasury and credit them to the general fund. 2.14 (b) The commissioner shall deposit taxes in the Minnesota 2.15 agricultural and economic account in the special revenue fund if: 2.16 (1) the taxes are derived from sales and use of property 2.17 and services purchased for the construction and operation of an 2.18 agricultural resource project; and 2.19 (2) the purchase was made on or after the date on which a 2.20 conditional commitment was made for a loan guaranty for the 2.21 project under section 41A.04, subdivision 3. 2.22 The commissioner of finance shall certify to the commissioner 2.23 the date on which the project received the conditional 2.24 commitment. The amount deposited in the loan guaranty account 2.25 must be reduced by any refunds and by the costs incurred by the 2.26 department of revenue to administer and enforce the assessment 2.27 and collection of the taxes. 2.28 (c) The commissioner shall deposit the revenues, including 2.29 interest and penalties, derived from the taxes imposed on sales 2.30 and purchases included in section 297A.61, subdivision 3, 2.31 paragraph (g), clauses (1) and (4), in the state treasury, and 2.32 credit them as follows: 2.33 (1) first to the general obligation special tax bond debt 2.34 service account in each fiscal year the amount required by 2.35 section 16A.661, subdivision 3, paragraph (b); and 2.36 (2) after the requirements of clause (1) have been met, the 3.1 balance to the general fund. 3.2 (d) The commissioner shall deposit the revenues, including 3.3 interest and penalties, collected under section 297A.64, 3.4 subdivision 5, in the state treasury and credit them to the 3.5 general fund. By July 15 of each year the commissioner shall 3.6 transfer to the highway user tax distribution fund an amount 3.7 equal to the excess fees collected under section 297A.64, 3.8 subdivision 5, for the previous calendar year. 3.9 (e) For fiscal year 2001, 97 percent; for fiscal years 2002 3.10 and 2003, 87 percent; and for fiscal year 2004 and thereafter, 3.11 87.1 percent of the revenues, including interest and penalties, 3.12 transmitted to the commissioner under section 297A.65, must be 3.13 deposited by the commissioner in the state treasury as follows: 3.14 (1) 50 percent of the receipts must be deposited in the 3.15 heritage enhancement account in the game and fish fund, and may 3.16 be spent only on activities that improve, enhance, or protect 3.17 fish and wildlife resources, including conservation, 3.18 restoration, and enhancement of land, water, and other natural 3.19 resources of the state; 3.20 (2) 22.5 percent of the receipts must be deposited in the 3.21 natural resources fund, and may be spent only for state parks 3.22 and trails; 3.23 (3) 22.5 percent of the receipts must be deposited in the 3.24 natural resources fund, and may be spent only on metropolitan 3.25 park and trail grants; 3.26 (4) three percent of the receipts must be deposited in the 3.27 natural resources fund, and may be spent only on local trail 3.28 grants; and 3.29 (5) two percent of the receipts must be deposited in the 3.30 natural resources fund, and may be spent only for the Minnesota 3.31 zoological garden, the Como park zoo and conservatory, and the 3.32 Duluth zoo. 3.33 (f) The revenue dedicated under paragraph (e) may not be 3.34 used as a substitute for traditional sources of funding for the 3.35 purposes specified, but the dedicated revenue shall supplement 3.36 traditional sources of funding for those purposes. Land 4.1 acquired with money deposited in the game and fish fund under 4.2 paragraph (e) must be open to public hunting and fishing during 4.3 the open season, except that in aquatic management areas or on 4.4 lands where angling easements have been acquired, fishing may be 4.5 prohibited during certain times of the year and hunting may be 4.6 prohibited. At least 87 percent of the money deposited in the 4.7 game and fish fund for improvement, enhancement, or protection 4.8 of fish and wildlife resources under paragraph (e) must be 4.9 allocated for field operations. 4.10 (g) The commissioner shall deposit the additional revenues 4.11 derived from the difference in sales price under section 4.12 297A.62, subdivision 4, in the youth tobacco use prevention 4.13 account in the general fund for use under section 144.397. 4.14 Sec. 4. Minnesota Statutes 2002, section 297F.05, 4.15 subdivision 1, is amended to read: 4.16 Subdivision 1. [RATES; CIGARETTES.] A tax is imposed upon 4.17 the sale of cigarettes in this state, upon having cigarettes in 4.18 possession in this state with intent to sell, upon any person 4.19 engaged in business as a distributor, and upon the use or 4.20 storage by consumers, at the following rates
, subject to the4.21 discount provided in this chapter: 4.22 (1) on cigarettes weighing not more than three pounds per 4.23 thousand, 24 mills on each such cigarette; and 4.24 (2) on cigarettes weighing more than three pounds per 4.25 thousand, 48 mills on each such cigarette. 4.26 [EFFECTIVE DATE.] This section is effective for sales of 4.27 stamps after June 30, 2003. 4.28 Sec. 5. Minnesota Statutes 2002, section 297F.08, 4.29 subdivision 7, is amended to read: 4.30 Subd. 7. [PRICE OF STAMPS.] The commissioner shall sell 4.31 stamps to any person licensed as a distributor at a discount of4.32 1.0 percent fromthe face amount of the stamps for the first4.33 $1,500,000 of such stamps purchased in any fiscal year; and at a4.34 discount of 0.6 percent on the remainder of such stamps4.35 purchased in any fiscal year. The commissioner shall not sell 4.36 stamps to any other person. The commissioner may prescribe the 5.1 method of shipment of the stamps to the distributor as well as 5.2 the quantities of stamps purchased. 5.3 [EFFECTIVE DATE.] This section is effective for sales of 5.4 stamps after June 30, 2003. 5.5 Sec. 6. Minnesota Statutes 2002, section 297F.09, 5.6 subdivision 2, is amended to read: 5.7 Subd. 2. [MONTHLY RETURN; TOBACCO PRODUCTS DISTRIBUTOR.] 5.8 On or before the 18th day of each calendar month, a distributor 5.9 with a place of business in this state shall file a return with 5.10 the commissioner showing the quantity and wholesale sales price 5.11 of each tobacco product: 5.12 (1) brought, or caused to be brought, into this state for 5.13 sale; and 5.14 (2) made, manufactured, or fabricated in this state for 5.15 sale in this state, during the preceding calendar month. 5.16 Every licensed distributor outside this state shall in like 5.17 manner file a return showing the quantity and wholesale sales 5.18 price of each tobacco product shipped or transported to 5.19 retailers in this state to be sold by those retailers, during 5.20 the preceding calendar month. Returns must be made in the form 5.21 and manner prescribed by the commissioner and must contain any 5.22 other information required by the commissioner. The return must 5.23 be accompanied by a remittance for the full tax liability shown ,5.24 less 1.5 percent of the liability as compensation to reimburse5.25 the distributor for expenses incurred in the administration of5.26 this chapter. 5.27 [EFFECTIVE DATE.] This section is effective for sales made 5.28 after June 30, 2003. 5.29 Sec. 7. Minnesota Statutes 2002, section 297F.10, is 5.30 amended to read: 5.31 297F.10 [DEPOSIT OF PROCEEDS.] 5.32 Subdivision 1. [TAX AND USE TAX ON CIGARETTES.] Revenue 5.33 received from cigarette taxes, as well as related penalties, 5.34 interest, license fees, and miscellaneous sources of revenue 5.35 shall be deposited by the commissioner in the state treasury and 5.36 credited as follows: 6.1 (a) first to the general obligation special tax bond debt 6.2 service account in each fiscal year the amount required to 6.3 increase the balance on hand in the account on each December 1 6.4 to an amount equal to the full amount of principal and interest 6.5 to come due on all outstanding bonds whose debt service is 6.6 payable primarily from the proceeds of the tax to and including 6.7 the second following July 1; and 6.8 (b) after the requirements of paragraph (a) have been met: 6.9 (1) the revenue produced by one mill of the tax on 6.10 cigarettes weighing not more than three pounds a thousand and 6.11 two mills of the tax on cigarettes weighing more than three 6.12 pounds a thousand must be credited to the Minnesota future 6.13 resources fund; and6.14 (2) the revenue derived from section 5 must be credited to 6.15 the youth tobacco use prevention account in the general fund for 6.16 use under section 144.397; and 6.17 (3) the balance of the revenues derived from taxes, 6.18 penalties, and interest (under this chapter) and from license 6.19 fees and miscellaneous sources of revenue shall be credited to 6.20 the general fund. 6.21 Subd. 2. [TAX AND USE TAX ON TOBACCO PRODUCTS.] The 6.22 revenue derived from section 6 must be credited to the youth 6.23 tobacco use prevention account in the general fund for use under 6.24 section 144.397. Revenue received from taxes on tobacco 6.25 products, as well as related penalties, interest, and license 6.26 fees shall be deposited by the commissioner in the state 6.27 treasury and credited to the general fund.